Battle of the Tasman: Jetstar muscles into Air New Zealand services to Queensland

Jetstar is launching two new transtasman routes and basing another aircraft in this country to “significantly” expand its New Zealand operations in moves that will help bring down fares.

It will fly directly against rival Air New Zealand with new flights between Auckland and the Sunshine Coast (Maroochydore) and will further expand its presence in Christchurch, launching a new service between that city and Cairns.

The airline says an eighth aircraft in New Zealand will help add 240,000 new low fares seats each year and boosting tourism on both sides of the Tasman.

The low-cost carrier - a Qantas subsidiary - has announced it will increase capacity on key domestic routes, starting with Christchurch to Auckland and Auckland to Wellington. It’s also planning to further grow its New Zealand domestic operations in the next 12 months.

It has been flying New Zealand domestic routes for the past 15 years.

In addition to the new routes, Jetstar will adjust its Christchurch to Melbourne flight times to improve connectivity to its long-haul international network. This will provide better access to Jetstar’s flights between Melbourne and Asia, including Ho Chi Minh City, Phuket, Singapore and Bangkok, and enhance inbound tourism to the South Island.

To support the growth in flying, Jetstar will base an additional aircraft in Christchurch from December, bringing its New Zealand fleet to eight Airbus A320 aircraft.

It’s the first time Jetstar has expanded its jet fleet in New Zealand in more than 10 years.

Jetstar Group CEO, Stephanie Tully said today’s announcement marks the biggest boost to Jetstar’s operations in New Zealand in more than a decade.

“This month we’re celebrating our 15th birthday in New Zealand, and as we mark this milestone, we’re really excited to be entering such a significant period of growth.”

Having another aircraft based in Christchurch, as well as the launch of new flights and capacity, will help establish the city as a major gateway for Jetstar in New Zealand, providing more choice and great low fares for South Island residents.

Qantas will by the end of the year do more flying than Air New Zealand to and from both Christchurch and Wellington.

Jetstar is understood to have been rarely been profitable in this market and at times been plagued by poor on time performance. But it says that during the past six months, its domestic cancellations have dropped to around 1% or less and on average, more than 80% of its flights have arrived on time so far this year.

Airfares in this country and across the Tasman spiked sharply when borders opened after Covid restrictions, and although they are starting to fall slightly further increases in capacity could help drive down prices faster.

The Australian airline’s domestic expansion will be another challenge for Air New Zealand, under pressure in its home market as highly profitable flights for government staff have been travelling less to cut costs. Jetstar targets mainly leisure travellers here, typically less profitable but it has a lower cost base.

Jetstar’s three weekly services from Christchurch to Cairns will start in April next year and the Auckland-Sunshine Coast flights will start in December.

Christchurch Airport chief executive, Justin Watson, said Jetstar had given the city a “huge vote of confidence”.

“More seats across the Tasman offers better choice and a direct connection with Cairns opens up a seamless two-way link to the fantastic opportunities in the South Island and in Tropical North Queensland.”

Promotional one-way domestic fares start from $39 and transtasman prices start at $199 in 24-hour launch sale from today.

Before Jetstar’s announcement, Air New Zealand’s chief of customer and sales Leanne Geraghty said New Zealand is one of the most open countries in the world for airlines – it’s an “open skies” country.

“‘We don’t shy away from competition. Every route we fly in New Zealand is open for any other airline to fly.”

Grant Bradley has been working at the Herald since 1993. He is the Business Herald’s deputy editor and covers aviation and tourism.